Vineyards are often planted on hillsides with soil of marginal value to other plants. Some of the best wines come from vineyards planted on steep, rocky hills which have limited economic use for most any other purpose.
The California Wine Institute is your best source of current information for all matters affecting the California wine industry and grape growers.
The taste of a wine depends not only on the grape species and varietal blend, but also on the ground and climate (known as terroir) where it is cultivated. Terroir refers to the unique combination of natural factors associated with any particular vineyard. These factors include such things as soil, underlying rock, altitude, slope of hill or terrain, orientation toward the sun, and microclimate (typical rain, winds, humidity, temperature variations, etc.) No two vineyards have the exact same terroir.
Vineyard & Wine Producing Economics
By Bruce Woodworth
An Independent Buyers Broker/Consultant
Paso Robles, California
Vineyard and wine producing economics can vary widely from region to region and property to property. Always seek professional advice on specific properties and verify all information for your own purposes.
Vineyard planting can run between $15,000 and $50,000 per acre, depending on how much soil prep and grading is needed. Contract vineyard planting and maintenance services are available in all wine producing regions.
General yield can be 2 – 6 tons per acre, subject to Mother Nature and pruning techniques. Some vineyards will prune the vines down to 1 – 3 tons per acres for a higher sugar content and/or other reasons relative to the desired end product.
General yield for bottled wine is 65 cases per ton X 12 bottles per case = 780 bottles of wine per ton.
Vineyard maintenance can range from $100 to $300 per acre per month or more, depending on end product objectives.
Wholesale grape prices can range from $100 per ton in glut years to $1,000+/- per ton and up for premium grapes.
Boutique Winery Investment Example
A ten acre producing vineyard on, say, 15 - 20 acres of land with a residence, tasting room and wine storage facilities could require a far ranging investment between one and five million dollars and up.
Through rose colored glasses, an established 10 acre vineyard with premium wines could show annual profit and losses as follows: